The shipping containers are stacked up, row after row, on the docks in Los Angeles.

The number of ships sitting at anchor offshore is growing by the day — so much so that Long Beach looks more like a floating parking lot than one of the nation’s premier ports.

And from small to large businesses, from trucking firms to the nation’s leading retailers, the costs are mounting fast. We’re talking about the potential for several billions of dollars in added expenses and lost productivity before all is said and done.

It’s the great port dispute of 2014-15, and it’s so bad that President Obama is sending Labor Secretary Tom Perez to California today to try and mediate a solution.

Wal-Mart warned that the slowdown at the ports of Los Angeles and Long Beach will increase logistics challenges.

So what’s behind this dispute? Workers represented by the International Longshore and Warehouse Union want a better contract than the one that expired last June. But port owners represented by the Pacific Maritime Association claim workers are purposefully slowing the pace of work in bad faith, and are refusing to pay overtime and holiday wages as a result.

The result is that some 29 ports up and down the west coast are operating at much reduced levels of efficiency. Cargoes aren’t getting offloaded from ships as quickly. Then when they are offloaded, they’re piling up on shore rather than making their way rapidly to waiting truck beds or rail cars.

In fact, this is the worst port dispute since 2002. That fight cost the shipping and logistics industries an estimated $15.6 billion. Just a few examples of the spreading pain:

* Honda Motor (HMC, Weiss Ratings: C+) is going to curtail auto production at plants in Ohio, Indiana, and Canada. The culprit? Parts shortages caused by the port dispute.

* Toyota (TM, Weiss Ratings: B+) and Nissan (NSANY, Weiss Ratings: B) are among carmakers being forced to fly in parts, rather than send them by sea. That raises costs dramatically, eating into profit.

* Jeans maker Levi Strauss said it may not have certain products on the store shelves in time for spring, while Wal-Mart (WMT, Weiss Ratings: B+) warned of increased logistics challenges. The National Retail Federation says a full worker lockout could cost the economy as much as $1.9 billion per day.

“The National Retail Federation says a full worker lockout could cost the economy as much as $1.9 billion per day.”

We’ve seen the Dow Jones Transportation Average stall out since November, even as other major stock indices have made marginal new highs. It’s hard to draw a definitive cause-and-effect relationship there. But it’s worth noting the divergence, and pointing out that widespread labor slowdowns and shipping snafus certainly won’t do the sector any favors!

So take a minute and weigh in here. Is this a major economic crisis brewing? Or will the sides be able to work this out without significant economic losses? Do you generally support management’s stance, or do you think dockworkers have legitimate gripes that need to be addressed? Let me know over at the Money and Markets website!

Our Readers Speak

Should we be optimistic about stocks, with the averages hitting or nearing new highs? Will autos continue to “drive” those kinds of gains? And what about electric cars — are they really as revolutionary as some are claiming? Those are the kinds of questions on your mind over at the website this weekend.

Reader Holygeezer said the environmental costs of a quest for growth aren’t being appreciated enough. His take:

“The stock market is reaching new highs. Meanwhile runaway environmental collapse is happening at the hands of unfettered capitalism. Just keep on acting like endless growth can actually work out. Grab those profits like they mean something. In the coming years all the so-called wealth will not mean a damn thing. It’s nothing but an insane fool’s errand chasing wealth at the cost of life itself.”

Reader John W. and Reader Jim indirectly raised the same issue, in the context of battery-powered cars like those manufactured by Tesla. John said: “Everyone talks about the great mileage it gets, that recharging is faster, and how more recharging stations are coming on line. All of this is great … but the one nagging question that I have never heard is, ‘How much does that electricity that you put into the car cost?’ It is not free. What’s the cost of the recharge?”

Jim responded by saying: “It’s also relevant to ask what fuel is being used to generate the electricity and how much of it per kilowatt. One of the nastiest things on the planet is a used battery. What happens to it and the poisonous waste inside it?

“Also, what changes to our infrastructure would be required for us all to drive one? This needs to be considered before we decide how clean it really is and whether or not it is practical on a massive scale.”

Great thoughts, guys. You’re absolutely right that the juice coming out of those recharging hoses has to come from somewhere — from burning coal or natural gas, or other sources such as nuclear power plants. So both the industry and consumers are going to have to sort out the benefits and drawbacks to fossil-fueled and battery-powered vehicles, and figure out which make the most sense going forward.

Finally, when it comes to paying for cars, Reader Ted T. weighed in with the following observation on auto financing:

“The one thing everyone talks about is the subprime problem. Our dealership sells about 25 percent of our cars subprime. The finance companies are getting much more money down than they did in the recession five years ago. Also, the finance companies are putting the customers into low-priced, new cars.”

The gist of Ted’s comments seems to be that subprime car financing isn’t as much of a problem now as subprime home financing was several years ago. Do you agree? Or do you think we need to be more concerned? Weigh in over at the website, using this link!

Other Developments of the Day

An oil train transporting almost 110 tankers of crude derailed and exploded in West Virginia. The CSX train was carrying oil from North Dakota to Yorktown, Virginia, and it’s not the first to experience problems. That’s why the government is mulling a program to require upgrades to the U.S. oil tanker fleet.

The immigration fight is heating up, with a Texas district judge issuing an injunction against President Obama’s plan to relax deportations for up to 5 million immigrants. Several states sued, saying the costs of the immigration program were too onerous. The Supreme Court may ultimately need to weigh in.

That cease fire in Ukraine? It’s looking a bit shaky today, thanks to ongoing fighting between Pro-Russian rebels and Ukrainian forces. The main area of contention is Debaltseve, an important rail hub in the country’s east.

Are you ready to drive an “iCar”? You may someday have the chance, according to reports suggesting that Apple (AAPL, Weiss Ratings: A+) is working on producing an electric vehicle. No word on when such a car would hit the market, but it would compete with battery-powered cars produced by a host of other companies from Tesla Motors (TSLA, Weiss Ratings: D+) to General Motors (GM, Weiss Ratings: B).

Feel free to comment on these or any other stories you came across during the long holiday weekend at the website.

Until next time,

Mike Larson

Mike Larson graduated from Boston University with a B.S. degree in Journalism and a B.A. degree in English in 1998, and went to work for Bankrate.com. There, he learned the mortgage and interest rates markets inside and out. Mike then joined Weiss Research in 2001. He is the editor of Safe Money Report. He is often quoted by the Washington Post, Reuters, Dow Jones Newswires, Orlando Sentinel, Palm Beach Post and Sun-Sentinel, and he has appeared on CNN, Bloomberg Television and CNBC.

{76 comments }

bobTuesday, February 17, 2015 at 5:03 pm

This slowdown has put many small businesses in dire straits (no pun intended)! Christmas trees arrived for New Year’s Day. Apples to help celebrate Christmas rotted in the containers due to delays. Customers are being lost daily. They’ll find reliable people to get their business done!
We have three container ships parked in our bay today. Expect more. This never happened before!
Big companies will survive. Smaller companies are being “deep sixed” by the ports!

MaryTuesday, February 17, 2015 at 5:07 pm

The juice coming out of those Tesla charging stations is from the sun. It’s solar generated. So relax and enjoy them.

JimTuesday, February 17, 2015 at 6:20 pm

Requiring a lot of fresh water to maintain and operate.

JimTuesday, February 17, 2015 at 6:29 pm

Also, how many panels to operate millions of cars. Will we only be allowed to drive when the sun shines? If there is one thing that is clear its that sun, wind, bio, etc is nowhere near ready for mass application. They all require redundant conventional backup systems. In other words you have two grids instead of one. Real efficient!

JohnTuesday, February 17, 2015 at 5:11 pm

I had heard that the dockworkers (very good) health care plan qualified as a “Cadillac Plan” under Obamacare, and, was due to be heavily taxed. The workers wanted the companies to pick up the “tax”, which was substantial. If this is a key element of the dispute, it should be more widely publicized, as it would be linked to more widespread failings of that plan.

GeorgeWednesday, February 18, 2015 at 12:58 am

With salaries in the six figure plus range and a benefit package that exceeds most other workers actual wages it would seem there is an over abundance of Union greed with this Teamster ports problem and is a compelling reason that businesses that are abused by unions are going to more and more robotics.

brianWednesday, February 18, 2015 at 7:15 am

the union should get all they can get in wages and more.. the banks and sports are the greedy ones. fuck the big banks and sports programs and teams.leave the working class people be.

AllistairWednesday, February 18, 2015 at 4:01 pm

Businesses are going to more and more robotics regardless. The move towards less and less (human) Workers and more robotics, to increase or maintain profits, is an intrinsic characteristic of the current world economic system. However, this relentless move towards less and less (human) Workers is clearly unsustainable and is one of the indications that the world economic system has reached the stage of decadence and will eventually collapse (into complete chaos), except if we have a fundamental change (a complete revolution, and not just cosmetic reforms) away from the current world economic system to a SUSTAINABLE alternative economic system.

Tom carellaTuesday, February 17, 2015 at 5:15 pm

In sub prime loans, the borrower takes what he can get at an inflated price with what ever mark ups the dealer wants. Selling to a captive market creates profit for the seller and work for subprime loan companies. To the collection process these market ups off no valve and tend to inflate the price thus increasing the write offer loss. In the end you don’t recover value unless your selling tax credits and I’m not sure that is a good business model in the long run

Gavin TrowsdaleTuesday, February 17, 2015 at 5:18 pm

You failed to mention hydro, wind, and solar when you identified where the electricity used to charge electric cars might come from, implying that electric motors are no cleaner than internal combustion. Come on, Mike, you can do better.

Jerry RichardsonTuesday, February 17, 2015 at 5:30 pm

You fail to mention that alternative energy is but a small part of the US mix. Electricity for electric cars will not come from wind and solar any time soon!!!

JimTuesday, February 17, 2015 at 6:58 pm

If this stuff is so clean and affordable why are the Europeans, who are years ahead of us, dumping it right and left. Many in Europe are saying that green energy has been a disaster for their economies. How can energy that costs four or five times what fossil fuel costs, and not available 24-7, be good for the economy? The price alone is prohibitive at present. AND anyone who tells me three tenths of one per cent of something in the atmosphere represents an apocalyptic threat needs their own private rubber room. Jim

Chuck BurtonTuesday, February 17, 2015 at 5:19 pm

As for the west coast port problems, perhaps some of those companies that thought they were so smart in making things in low wage Asian nations will decide they might be better off doing more of their manufacturing in this country after all. Automation might reduce cost differentials to manageable levels, and even improve quality. Even with automation it could giver more jobs to American workers. Government taxers/regulators take notice. You are the ones who drove jobs elsewhere in the first place.

GordonTuesday, February 17, 2015 at 5:20 pm

Living in the Seattle area, I just have to look out to Elliot Bay to see the mess this slowdown has caused.The West Coast port slowdown has had far reaching affects with hundreds of businesses, not just trucking companies, and truck drivers, shipping companies and ship owners. Produce companies in the US and in Asia are being slammed by this, as are thousands of companies that rely on imports or exports for their products. And it is all being driven by that same old monster — GREED. I was stuned to hear a local radio newsman tell us the average salary of a longshoreman (at least in the Seattle-Tacoma ports) is a whopping $145,000 a year!!!. That’s morethan $12,000 a month! How many of us in our various professions and jobs make that much or more? Not a lot of us. And yet, the longshoremen are willing to cause billions of dollars of damage just so they can have their contracts sweetened even more. Another black mark for unions and their need for greed above anything else and any other set of values. It reminds me of what Samuel Gompers, the original union organizer said, when asked by management what he wanted. His one word answer? “More.”

PeteWednesday, February 18, 2015 at 1:52 am

automation My oldest son is a longshoreman in Tacoma. What the union is upset about is automation, how would you like your live hood taken over by a machine. The money saved by automation will not stay in the Seattle Tacoma area but go to wall street

Ben HopkinsTuesday, February 17, 2015 at 5:27 pm

Yes, it’s a major crisis because it’s a SYMPTOM of vulnerability/brittleness/fragility of a global economy that is excessively complex and excessively inter-dependent geographically, with massive transport costs, energywise and otherwise. Physical reality rules, regardless of misleading short term price signals; therefore the road ahead will be bumpy.

Jesse MitchellTuesday, February 17, 2015 at 5:28 pm

As some broadcaster recently described it, “the port labor problems are like the NFL and the players battling it out to see who can get the most money, because there is a lot of money to be made.” The customer and the economy are the losers. Definitely not an acceptable system.

JerryTuesday, February 17, 2015 at 5:39 pm

This reminds me of when I was a kid in West Virginia a long time ago. John L. Lewis and the UMW put the coal companies out of business with their demands. It is time for both sides to “get reasonable” before the invocation of Taft-Hartley and subsequent nationalization of the ports. Both sides seem to have forgotten whom they work for!

Glenn MillerTuesday, February 17, 2015 at 5:40 pm

Anytime you deal with Longshoremen you find they are the most radical, self-centered people on god’s green earth. It’s their way or the highway. The union wants to run the companies. And do not try to send people across picket lines or we will see the hoodlum fringe show up immediately. We ought to outfit them and send them to fight ISIS. That would kill two birds with one stone.

Bill K.Tuesday, February 17, 2015 at 5:44 pm

There was a time unions were needed, badly. But this is a question of greed, as usual. I was a union member, ironworkers. And frankly, there’s a point where you have to draw aline. Give incentives, bonuses, whatever. But to continually DEMAND more without producing more only hurts EVERYONE. Remember when the unions complained about robotics taking jobs etc and managemnent said it would keep costs down. Well, look at the price of cars. Meanwhile the unions demanded more ( like entry level floor sweepers starting at 18.oo an hour!) Remember when things got so bad from unions in England and what they did…and it worked. Remember when here we had to put wage freezes in effect….things got back to normal. I don’t know what the port workers want now, but I’d like to see their incomes and bene’s to date.

Sailor JoTuesday, February 17, 2015 at 5:45 pm

Having been in the shipping industry myself I follow the situation on the West Coast with special interest. I read the numbers what it costs the businesses not to pay higher wages but how much would it cost them to pay higher wages? May be $100k per day? Moving conntainers does not take many people.

Funny thing, the Republicans just changed the rules for “dynamic” budget changes in case of tax decreases. Why do the businesses not do the same and figure out how much more business they can do if workers have better wages?

Besides, the backlog in shipping started before the labour dispute. The dispute is a cheap excuse to oppress workers ever more. What is needed is a good organisation but that is not what the US is known for. As a friend of mine told me: Americans love it complicated. I believe that statement can be verified just by looking at the tax code or the workings of Homeland Security.

OHoustonTuesday, February 17, 2015 at 5:48 pm

Something fishy (no pun intended) is going on at the ports. I live in San Pedro and have noticed the slowdown both ports for weeks! In comparison to what happened in 2002 the problem seems much bigger but its not nearly the big story it was in 2002. I went to high school with some of the workers at the ports. They make six figures with just a high school diploma. I would bet it has something to do with the upcoming Cadillac Health plan tax.

WILLIAMTuesday, February 17, 2015 at 5:56 pm

Mr. Perez, oh my, your mediation skills are going to get tested. A contract expired LAST JUNE 2014 then, and these dock workers were supposed to keep doing what? Contracts keep work conditions from becoming “ON THE WATERFRONT” Brando taught that movie. How much does it matter to California to keep the merchandise flow going? Simple question. This would be comparable to that R/R yard in Chicago, I recall, if train loads of goods were interrupted.

A biggest lesson the adult world is showing youngsters is, here is where we show this can be kept from getting anymore childish or, youngsters will learn from how this delay in commerce effects mom and dad from meeting their children’s needs. No wonder the news shows how adults start giving each other crap when harmonious daily stops as this cargo backlog. A controlled bickering war but, war no matter by the greater domino this article admits.

Who is this making elaborate comment? A “thorough” engineer background at 60 who sees things/events all the time allowed he would NEVER let be to start. Someone was not composing a contract around the time of June to avoid what is now? Who you are, is being BEYOND STUPID considered a virtue? I rest my case.

trailwaysTuesday, February 17, 2015 at 6:00 pm

our labor unions will collapse the economy . there are five million new immigrants that would go to work tomorrow for pennies on the dollar . lets let the unions kill the country and business waiting on christmas trees

Pete HaglerTuesday, February 17, 2015 at 6:08 pm

As to the electric generation question–Am I the only Person who remembers Nixon, after the first oil embargo, issued a presidential directive that all conventional power plants would be powered by coal? And in the intervening years, the eco-Gestapo (my name for the EPA) would not even allow many units built in the late 70’s to be dual-fuel: able to burn coal or natural gas. The cost to retro fit is astronomical. It takes a burned fuel to move a vehicle, whether with a gas motor or electric: with electric, the fuel is burned remotely, so to speak. The power industry and the customers who support it need protection from the whims of narcissistic leaders.

WiilyTuesday, February 17, 2015 at 6:08 pm

It is a shame that these US companies are in such a straight? With all the loss they incuring due to a work slowdown at the docks on the west coast. Why are american companies crying for when the american named products that are sold to the american customers still sitting on the dooks coming from countries on the other end of the Pacific. Strange isn’t it.Do I hear any reason for it,NO. The greed that motivates companies here in America, have become so used to it they still think they are in the right. When they become smarter than their highly paid managers that compute their share of greef maybe something may happen. To bad .

JeffTuesday, February 17, 2015 at 6:11 pm

Yet another reason I don’t like unions. If they want a raise, they just slow down their work or stop working altogether. If the Democrats weren’t in their back pocket, unions would have gone extinct decades ago.

H. Craig BradleyTuesday, February 17, 2015 at 6:15 pm

COOK’S FOLLY

Jon Markman claims in his many previous articles (Forbes) that I-Watch will not be the grand slam many investors or Apple are hoping for. As it is, the initial release date of an I-Watch has been pushed back several times, I believe. They have had design and technical problems, particularly with the health monitoring aspects ( now off the table).

Instead, Jon has opined the initial I-Watch is more likely to disappoint after this year’s novelty wears off. Only existing and loyal Apple users will want to spend $400 to see how they work and own one. Most Millineals don’t wear a watch of any kind to begin with. It may add some additional, incremental revenue to Apple at the margin, but probably won’t move the dial that much. Apple is too big a company for that now.

As far as other rumored R&D Efforts such as Apple T.V. or now, an I-Car (electric), well its just more “vaporware” as some have put it. Even Telsa is going to have to first have a quantum technology breakthrough with battery size, weight, and storage before it’s product really gets adopted by the mass market. No sign of that in the near future. For now, its only a niche product (car).

So, until I-Car or “Apple T.V.” are actually in the store to see and selling to lines of anxious customers, it remains only a rumor or possibility, NOT a reality. It may never be a successful product or even a real product at all. Until it is more than a design concept on the drawing board, its just a speculation.

Apple stock will continue to go up as long as the overall market is accommodating ( no major correction coming up), investor sentiment remains high, AND quarterly revenue continues to exceed analyst expectations. If revenue growth falters or the overall market corrects, Apple stock will either go down or stall-out.

So, whether Apple becomes a much acclaimed $ 1 Trillion dollar stock is merely an expression of current bull market excitement and exuberance. It may or may not ever become a commercial success in the next two years or at all. Therefore, I would not bet on it.

Carl KennedyTuesday, February 17, 2015 at 6:17 pm

Unions no longer serve a constructive function except for the union bosses and union management who make millions from dues. I’d send the National Guard in and use company management to train non-union workers hunting work to replace the union workers if they won’t stop the slow down. They should be paid according to what they get done.

Paul FriedrichTuesday, February 17, 2015 at 6:30 pm

William says the longshoreman debacle is childish, unfair to the poor dock hand. Not only can a full time experienced worker earn $147,000/yr under the current pay scale, $35,000/yr medical coverage that has no deductibles, no co-pays and he pays 0 premium, his pension maxes at $85,000. The union not only insists on raising this ante, but also demands the right to summarily fire any local arbitrator who rules against them. This is the kind of crap that stalls contract negotiation. Which side is childish, stupid?

Van BowdenTuesday, February 17, 2015 at 6:45 pm

As far as electric cars, they are not the answer. It takes at least seven years of ownership to pay back the amount of energy needed to make the batteries in the first place according to reports I’ve read. Not to mention the hazardous waste from used batteries. Hydrogen fuel cell powered vehicles are going to be the wave of the future as far a green transportation is concerned. Many of the large automakers are already getting ready to roll out hydrogen fuel cell powered vehicles very soon. Who wants to have to wait long periods of time waiting for their cars to charge when you could just fill up with hydrogen just like you would will gasoline?

JimTuesday, February 17, 2015 at 9:00 pm

We were told in 1998 that Ballard Power Systems would own the world but it hasn’t happened. I don’t know much about fuel cells but they must have their own set of problems or we would have seen them long ago. The astronauts used them in 1968. I guess I’m the last person on Earth who absolutely loves the thrill and feel of 300 plus internal combustion HP under my hood.

danielTuesday, February 17, 2015 at 6:45 pm

I think the days of large company violating workers are coming to an end. If the companies dont believe it than fire all the union employees. what it would cost them to hire and train new workers and get them up to speed in a timely manner. I bet it would be more expensive than negotiating a fair contract .

Tony GauciTuesday, February 17, 2015 at 7:05 pm

After one day of walkout by CP rail last Sunday ,the Canadian govt ordered Arbitration to settle the dispute, Employees were back by Tuesday, Why let the country suffer so much??
Leadership issue, or Lobbying??

Ralph HallockTuesday, February 17, 2015 at 7:06 pm

Why is it that the press never mentions the wages of these poor ILWU members only averages $145000.00 annually? Poor, underpaid workers. They have my sympathy.

jiwillisTuesday, February 17, 2015 at 7:11 pm

It is hard to feel sorry for companies who have exported jobs to the East who now are having a tough time bringing products manufactured elsewhere back into the US. Yes I am aware of the reasons for them exporting the jobs, but if we collectively gave a rats behind and bought local, domestic jobs would come back. Or you can keep on buying that cheap crap from wallyworld and whine about no jobs.

Tony GauciTuesday, February 17, 2015 at 7:11 pm

What does the word “patience” regarding raise in interest rate by the Fed, spells in months, 2,3,4, 6?? If it is absent in March address would the big bang be June or October??

PapaTuesday, February 17, 2015 at 7:23 pm

Taft-Hartley injunction could send the workers back for 80 days. I don’t have a lot of sympathy for $100,000 plus wages for workers who’s skills are mostly learned on the job. I don’t know if the President has the stones to pull it off, but some increase is going to have to happen for workers who have been basically treading water for the last six or seven years. Just the start of the inflation wages train heading our way.

WKTuesday, February 17, 2015 at 7:28 pm

Where else in U.S. labor relations can an untrained, unskilled worker, non-college graduate begin with a base salary of $85,000 plus generous pension and “Cadillac” health insurance? (This is in Portland, Oregon.) After a few years, these same workers have an average of more than $115,000, but if the next salary and benefits increase is not completely out-of-line generous, they pout and demonstrate an utter lack of professionalism with “work slowdowns” and strikes.

Just because they are moving cargo worth millions a few hundred feet from ship to rail or truck does not automatically make them essential workers. This is a job that almost anyone can do, and would be willing to do for a lot less pay. Why doesn’t that happen? Only two ways I know of: illegal threats of force (“Mafia”) or regulatory collusion.

John CunninghamTuesday, February 17, 2015 at 7:40 pm

The labor dispute on the docks should be settled in favor of management. The workers really have no gripe except they want more “bennies” without any increase in productivity. They are high-paid already. Management should call in a “time, efficiency, and work expert,” and have him or her supervise the work pace. If there really is a deliberate work slowdown, the workers should be docked pay, or fired.

Chuck BurtonTuesday, February 17, 2015 at 7:48 pm

Governments and Unions seem to share a lot of characteristics. Governments are needed to give citizens protection against foreign and domestic thuggery. Unions are needed to give workers protection against the thuggery of bosses. The problem is that both tend to fall under the control of those political types who promise great benefits, but only if citizens/members pay up in taxes/dues and the granting of power. Eventually things may reach a breaking point in both cases, but when depends on the political skill of the leaders.

Fred1Tuesday, February 17, 2015 at 7:49 pm

Well, as usual, the knee-jerk environmental reaction of buying an electrical vehicle is not all that smart if you want to ‘protect the environment’.

The nickel found in the battery of a Prius is mined and smelted at a plant in Sudbury, Canada, which has had a profound effect on the surrounding habitat and NASA has labeled the area as a ‘dead zone.’ The area surrounding the plant isn’t habitable to any living thing. According to NASA, the area is used to test moon rovers. Another environmentally detrimental result is that the toxic and pungent gas, sulfur dioxide, has spread outside the town to the whole northern part of the province. Acid rain was so bad it destroyed all plants and the soil in the area as well.

The production that is needed to make a hybrid battery is as environmentally unfriendly as it gets. The nickel produced by the Canadian plant is shipped to the largest nickel refinery in Europe. From there, the nickel goes to China to produce ‘nickel foam.’ From there, it goes to Japan. Finally, the completed batteries are shipped to the United States. The carbon footprint attached to the making of a hybrid battery is extremely high, as can be seen by the frequent flyer miles the hybrid battery racks up.

You are probably better off to get a small, efficient gas or diesel burner if you want to ‘save the environment’.

Frank GrimesThursday, February 19, 2015 at 10:20 am

Everything you’ve said is false. The Prius is better for the environment than normal cars, with the battery manufacturing accounting for a tiny minority of the car’s overall environmental impact.

To begin with, the Sudbury nickel mining story came from the Daily Mail, and describes environmental damage that was both inflicted, and cleaned up, decades before the Prius even existed in the first place. Nothing that you’ve described about nickel mining in Sudbury can be attributed to the Prius at all. That story ended up being retracted for factual inaccuracy.

Secondly, shipping is the world’s most efficient form of transport. Transpacific cargo ships attain efficiencies of 1,000 miles per gallon, per ton. That means it takes less than 10 gallons of fuel to ship a completed Prius from Tokyo to Los Angeles. For shipping individual battery components which weigh far less than a ton, the environmental impact of shipping is even more negligible.

In reality, the majority of a car’s environmental impact is incurred in operations, not manufacturing, and that’s as true for the Prius as it is for any other car. Since the Prius is the most efficient non-electric car you can buy outside of very small and slow European diesel microcars, the Prius’ environmental impact is, in fact, one of the lowest of any car on the road today. Do not repeat lies from the Daily Mail that have long since been debunked.

BernardTuesday, February 17, 2015 at 8:00 pm

re: port strike: If the US got back to manufacturing most of the stuff that it now imports because of driving the work out of the country we would not have these strikes at ports. Has anyone ever done a study to determine what the actual cost to US consumers importing so many of these products which used to be manufactured in the US is compared to what it would cost even with the higher wages here if they were manufactured here?

FelixTuesday, February 17, 2015 at 8:20 pm

It is the labor unions last hurrah!
And they are trying (and failing) to make the most out of it.

Van AtkinsonTuesday, February 17, 2015 at 8:56 pm

Mike, I’m tired of reading these hacks (like me) who comment on your M&M letter. If you can’t give your take or those of other respected experts, JUST SHORTEN THE NEWSLETTER!

JimTuesday, February 17, 2015 at 11:46 pm

This is the fun part of the newsletter!

tommrtTuesday, February 17, 2015 at 9:05 pm

Yes, I have pointed out many times over the years that people really need to think about where the electicity for battery powered car is coming from. Is the over all efficiency and environmental polution really any better than an internal combustion engine? I don’t think it is!

tommrtTuesday, February 17, 2015 at 9:12 pm

I am dumbfounded as to why there has not been a big pubic outcry over the danger of transporting crude oil by train. There have been several horrific accidents involving these trains and yet there is no political will to replace them with much safer and more efficient pipelines. What is happening here?

JimTuesday, February 17, 2015 at 11:48 pm

The trains belong to Warren Buffet!

theodore coleTuesday, February 17, 2015 at 9:14 pm

Within limits, the unions should be given what they want. The costs will ber paid one way or the other! In time, many of these unionized workers will be replaced, partially because of their costs. ( robots & technology)

Robert PercivalTuesday, February 17, 2015 at 10:03 pm

Its now time to do something about the powerfull Unions as they seem to always want more when everyone else is taking it in the shorts.

What is happening now is a hostal act andshould be deltwith through real government leadership and not politics or doing business as special intrests want.

DaveTuesday, February 17, 2015 at 10:17 pm

Whether it be more fuel efficient a trucks, or cars, and even alternate fuel vehicles, State and Fed. will have to devise a tax scheme to pay for road construction and maintenance. It is already a problem with increased costs, more miles driven and fewer galons per mile driven. From the consumers perspective an unintended consequence. It will be addressed soon, just saying

b thompsonTuesday, February 17, 2015 at 10:19 pm

I think it better in general to pay a decent honest wage rather than have it stolen in merchandise etc. along the distribution chain.

Charles RadhamohanTuesday, February 17, 2015 at 11:57 pm

Hi Mike: FYI Honda Motor Corporation has been in India for many many years and they market a small car named i10 sine 2010 well received by the common public including myself and the other i cars are scheduled to arrive in India full speed. Just FYI
My Hyundai (Korean car built in India) is an excellent car and hs all features one finds in Toyota Prius (my car at my USA home in San Jose, California. I am proud to be an Indo American as a Dual Citizen I immigrated into USA as a Graduate student inEngineering at the University of Minnesota, Minneapolis.

Paul TurnerTuesday, February 17, 2015 at 11:59 pm

After a long career in the merchant marine, 1974 to 2003, I can only say the ILWU has had the sweetest contracts this side of eden. I talked to one member in 2002 who bragged to me he only had to work 12 days in one calendar year to get a full pension year’s credit. This was due to all the sick days, holidays, and extras he had piled up. These guys have been making in excess of $100,000 per year as entry level workers well over ten years ago. Now they are arguing over the overtime they are causing by their own slowdown? And arguing about binding arbitration? Give me a break. If you believe any of this, I have a bridge to sell you.

MosesWednesday, February 18, 2015 at 2:40 am

The dockworkers make a very good living and it is accurate that the opportunities for abuse are available for the people that want to take advantage of the system. I routinely hear of workers that “clock in the morning” and work 3 hours and then go home and they get paid for 8. Simply put, that is theft. We bear the cost of this fraud by having to bear the burden of the debt due to higher prices.
One fair question to ask is to how much should we really pay the workers for their efforts. In other words, “what value do they bring to the marketplace?” I have a hard time equating the labor for menial/manual labor (stated from a dockworker himself) and the cost to employ that individual to the tune of min 75K to150K a year with cradle to grave benefits. Especially when fraud is rampant and efficiency is questionable. How about other occupations that demand similar output that only pay 40-50 K/year? Something to think about. This statement is not based on a single individual. Rather from reports from several “longies”
One thing I have learned is this:
There ain’t no free lunch. Someone will be paying for it.
Never ignore the laws of physics and the laws of cause and effect.
If something sounds to good to be true, it probably is.
That that comes quick is soon lost.
Pigs are pigs and hogs get slaughtered.

Unions should be for fair representation and protection of workers. NOT for unfair leverage in milking the system if they can. Listen closely Union leaders……Reform is coming and legislative missiles may be launched that would make Taft- Hartley look pale by comparison. Workers- provide fair work for fair pay. That does not mean just because things were provided in the past, don’t expect it to be guaranteed for the future. Look at the
major mess that has been created for the pension systems and the faulty analysis and financial projections that were made to provide for those pensions many years later. Where does that money come from? In my opinion, pensions and benfits should be no more than what the private sector can afford. Management has the responsibility of generating a reasonable profit through the effective organization and management of the company through the efforts of well trained and effective employees whom should be compensated fairly. Both management and union and workers should treat each other with respect and fairness. If an impasse is in effect, then a third party should mediate the conflict through effective dialog and communication, and not necessarily from the government. We live in a great country and only through hard work on both sides of the equation of management and labor can we keep our nation strong. Long live America!!!!

carl inWisWednesday, February 18, 2015 at 4:59 am

Holdit! Before we endorse electric cars we better get an engineer to explain how each time you convert from one energy source to another you lose a whole lot of efficiency. That’s a hidden cost few ever think about.

LeoWednesday, February 18, 2015 at 8:35 am

Even if the left coast states enacted “Right to Work” laws, the entrenched corruption of the port industries would still keep the workers enslaved to the union bosses. And the union bosses keep the corrupt liberal politicians in power that protect their racket.

Guy WallaceWednesday, February 18, 2015 at 9:21 am

I believe that the unions got plenty from PMA when management agreed to pay the taxes on the “Cadillac” health care plans that labor have.
Now the 2 big issues is productivity, which obviously can affect union jobs and then the other major issues is chassis maintenance on terminal..
Productivity has to increase at the terminals as the velocity into and out of these terminals has decreased to the point that the trucking community is being adversely affected. With everything else happening with the carrier community (more regulations, EPA, CSA, HOS, and a host of new regulations) not being able to get more than 1 or 2 local moves per day into and out of the terminals is going to further reduce the pool of drivers needed for this critical link to the supply chain.
Over the last several years the steamship lines have gotten out of the chassis business (the frame & wheels under the container0. They did this to streamline operations and to attempt to cut cost. The chassis pools are for the most part under the jurisdiction of independent chassis operators or the equipment is owned/leased by the trucking community. The union wants the right to pull and inspect these chassis on terminal and if required (based on the unions inspection) handle required M&R. Now how anyone can have jurisdiction over another company’s property and that owner not being participator to a labor contact is baffling. This will add cost again to the carrier in time and in money and will no doubt lead to further legal issues between carriers, chassis owners and the union/PMA if agreed to.
Then there is also union’s push to have the right to fire an arbitrator if that arbitrators negotiations are not in line with the unions thinking. Kind of like firing your doctor if you don’t like what he has to tell you.
Lots of challenges for whoever wants to mediate this contract.

.

s wesleyWednesday, February 18, 2015 at 10:51 am

I have to wonder why Holygeezer is even on an investment newsletter. With his view, he is seeing all profits as bad. So why would he be investing? The goal is what he hates, profits from growth.

al d.Wednesday, February 18, 2015 at 1:01 pm

have just 3-quick messages.
1. time for need of unions is over. mgm’t is totally corrupt (in bed w/local, state, fed ‘collusion’ for sweetheart deals & excessive wage/benefits to detriment of regular workers and industry). suggest we now use pres. reagan method … simply replace w/non-union and force all who receive $$ from fed/state/local admin to set remuneration at medium scale w/moderate benefit-packages (but, of course, we are dealing w/the presidential imposer!! and allied ‘associates’).
2. autos, mileage, and the ‘dreamers’ of environmentally clean propulsion! this entire area of discussion has been ‘forced’ upon ‘we the people’ by the inflicted fed reg’s AND the sheeple ‘who have a dream’. if Kenworth et al, the company(s) that manufacture the cab & engines for long-haul trailers, was able to design a non-diesel engine utilizing nat. gas to greatly increase mileage and render engine life to 2-3K miles, then 1-2 companies should decide to flood market w/passenger-suitable engines for the car-makers. obviate all this nonsense re: ‘efficient’ and ‘eco-friendly’ alternatives. Really!
3. the environmental ‘disaster’ pushed by the dillusional/corrupt al g. goring us to death and the opportunity for more recent fraud by o’b trying to coalesce ‘his trojan agenda’ upon the economy is simply gang-style warfare … the country will shortly go through some massive push-back where ‘we the people’ have the answer and the will to restore the present craziness to some better form of normalcy for the country and citizenry.

TerriWednesday, February 18, 2015 at 4:11 pm

Commenting on todays comments – I’m going to wait for the first solar powered car.

Commenting on the dock workers – If they get more I want more. And if I get more others will want more. So what is the point?

Or I could say something like “Don’t those dock workers make a lot more money than 80-90% of population?” I also work hard. I receive no health or retirement benefits. I too could use a little more. Do they ever pity me?

AllistairWednesday, February 18, 2015 at 4:30 pm

Terri, you said – “…I too could use a little more. Do they ever pity me?…”

Your statement (question) seems to imply that you are antagonistic to the Dock Workers. But, the Dock Workers are definitely NOT against you and they are NOT the reason you “…receive no health and retirement benefits…”. I humbly suggest you put more efforts into knowing exactly who (and/or what) is having you work hard and yet receive no health or retirement benefits. Try to identify who your real enemy is (it is NOT the Dock Workers).

AllistairWednesday, February 18, 2015 at 4:12 pm

George said (in reply to a John) the following – “…it would seem there is an over abundance of Union greed with this Teamster ports problem and is a compelling reason that businesses that are abused by unions are going to more and more robotics…”

However, I now say (in reply to George) the following – Businesses are going to more and more robotics regardless. The move towards less and less (human) Workers and more robotics, to increase or maintain profits, is an intrinsic characteristic of the current world economic system. However, this relentless move towards less and less (human) Workers is clearly unsustainable and is one of the indications that the world economic system has reached the stage of decadence and will eventually collapse (into complete chaos), except if we have a fundamental change (a complete revolution, and not just cosmetic reforms) away from the current world economic system to a SUSTAINABLE alternative economic system.

LenWednesday, February 18, 2015 at 4:23 pm

As someone who worked my way through college at a Teamster’s shop, I can tell you what the employers are saying is accurate.
I could never understand why the older guys used to get so upset at me for exceeding the production quota I was given. “Stop working so hard” they used to say, “if you go over the minimum number you need to hit to not get fired, then the rest of us will have to work that hard and it will cut into our overtime.”

AllistairWednesday, February 18, 2015 at 4:58 pm

Len, it is true that some Workers are “lazy and corrupt”. In my personal experience (in my past jobs), even my Supervisor was against me for working very hard (and efficient). The main reason being that the hard working and efficient Worker can make those that are less capable (and NOT lazy) seem like they are not giving enough to the company.

However, I understand the main reason why those Workers, who are NOT “lazy and corrupt”, might have issues with someone that is “working too hard and too efficient”. The reason being that the “Bosses” (i.e. the Owners of the business), would FOREVER want everybody to work “harder and more efficient”. It NEVER ends, as competition forces the Bosses” to seek more and more from the Workers, while they try to keep wages and benefits down (even sometimes removing benefits) in order to keep profits up and stay in business.

As you might suspect, the REAL issue is NOT you (who is trying to work hard and efficient) and NOT the less hardworking Workers (not even the “lazy and corrupt” Workers – they are only aggravating a much bigger/wider problem). The REAL issue is the current world-wide economic system that has reached the stage of decadence and is clearly UNSUSTAINABLE, and is now over-ripe for a fundamental change (not reform) away from the current economic system to a sustainable alternative economic system that will wash away all the major socioeconomic issues we now face.

JanWednesday, February 18, 2015 at 5:00 pm

Nothing to do with wages. All about emptying shelves, causing riots, which will commence martial law.

Bob LWednesday, February 18, 2015 at 6:42 pm

In Minneapolis, the latest “oil train” news is the BNSF and CP railroads want to add connection tracks between the two railways in one of the suburbs. This will add 12 to 24 110 car trains a day through parts of the suburbs and city that currently have but 2-4 shorter trains running. This contrasts with 2 major derailments of oil cars in the news, one in W. Virginia and the other in Ontario. Upgrading standards for oil tanker railroad cars could take years, including the manufacture of them.

Jim MFriday, February 20, 2015 at 10:07 am

Unions as always focus on their members narrow desires, usually to the detriment of the state, region and in this case, the country. Unions caused the bankruptcy of Detroit and the pending disasters in Chicago, Illinois, California pensions by over-reaching. They are long-past their usefulness.

Dennis MorrowSaturday, February 21, 2015 at 3:18 pm

Hi Jim M
What you say is OK. Unions are overpaid, and this is fact. However, one notable item perhaps is this. Wages are based upon production, within a union. Failures happens when economies stutter and those production numbers dwindle , leaving the salaries high and dry above the reality of the new production numbers. Contracts are drawn up at the best of times, the strike point for the bosses of unions to seek opportunity within the company. These are ongoing problems within all of Democracy. Perhaps reality may happen some time in our future whereby Democracy realises that wages must be paid according to production. Otherwise, failure of the company will surface every time. Thank you for your great comment Jim. What you say is so real.

kathyMonday, February 23, 2015 at 1:38 pm

Here we go again. The unions did not cause the City of Detroit to go into Bankruptcy.
Get your facts first, before you make a comment. My husband is a retiree from the City of Detroit. The facts are these : the City of Detroit has a poor computer system. We know from all the misinformation that they send us and we are constantly going downtown to correct. The citizens do not pay their property taxes nor water bills. Some do. The city
fails to collect cannot keep track. ( lousy computers ) . My husband was forced by the mayor about 20 years ago to retire at the age of 58. The mayor (before K. Kilpatrick) also said anyone with 25 years or more had to retire by Jan. 1, 1995 anyone held over would be fired. Now there were over 24,000 retirees from the city of Detroit in 2014.
My husband worked 30 years for the City. Each year the management said they could not pay higher wages, some years it was a 50 cent increase per hour. They always said if the unions would take less money they would take care of them in their retirement with the health care. Well, we can see that would not be viable for too long.
As of 2014 anyone over the age of 65 is now on medicare and the City of Detroit is
no longer paying for health, vision, or dental insurance. We had their policies for 19 years , we still had cost associated with their plans. My husband is now going to be 77 years old this year. I agree the health care should be borne by the retirees after the age of 65. But, some of these retirees aren’t even 62 years old yet. This is where the city is still making their mistake. Too many retirees and not enough workers. Some workers have mandatory days off during the week. One woman is working for the City and still had to file bankruptcy and still move home to her parents with a child. The City had too many problems with the Mayor K. Kilpatrick and Mayor Dave Bing they both contributed to the downfall of Detroit in different ways read articles by Steven Henderson, Editor of the Detroit Free Press for more details.

RUSS SMITHSaturday, February 21, 2015 at 9:36 am

Hi!, Patrons Of Money & Markets Et. Al.:

Res ipsa lo qua tour (not sure of my spelling)…..learned from a Calif. state licensed psychiatrist decades ago interpreted means “letting the thing speak for itself” in Latin. It’s a shame for both sides of the dock workers’ issue weighing in so heavily upon business enterprises isn’t it; when employers and employees can’t get along causing everyone involved to suffer the consequences. Is it a viable question or not to ask if the Presidents’ health care influences aren’t the cause of this dispute and then Obama is sending a representative of his own to negotiate a way through this muddled mess? Is it a viable question or not to ask if robots replace enough human workers, will there be a saturation point where people who spend money into the economy as apposed to robots which only consume non human fuels will place a death spiral crimp on the Nations’ productivity demands causing recessionary implications? We all know that robots don’t eat human food, they don’t get sick (only break down), don’t go out on strike, don’t go out for vacations, don’t ask question of their owners like we have dockside in Calif. now etc., etc., etc. but neither do robots buy autos, go shopping at super markets, buy theatre tickets, see a doctor etc., etc., etc. We already have some 48 million people on food stamps and millions more graduate students unable to pay off their student debts due to a lack of economic activities don’t we? Is the answer to OUR human problems at work like presently happening with OUR Calif. dock workers etc. always going to be to get rid of people as employees and substitute them for robots forever until no human labor is needed? Seems like a little bit of a skewed system of problem resolution to me, because for one thing the work ethics atmosphere would be transformed into a robotic death row camp wouldn’t it without viable human interactions especially among friends at work etc.? There are more important things in this life aren’t there than merely just working and eating are there not? Is it actually a friendly act at work, to ask workers in todays’ workforce to take on excessive health care costs that threaten their very abilities to carry on the rest of their lives without excess cost interference that may cause strife between husbands and their wives etc.? Is it a friendly act at work, to have to ask for unionized interventions, in order to come to the restraints it takes to negotiate a settlement leaving both sides of the arguments being settled still psychologically at odds with each other rather than total peace between them in a more friendly atmosphere? In the meantime isn’t it also unfair to other businesses that are being upset too due to the extraordinary delays in goods distribution between producers and consumers etc.? Something will have to give soon between management and labor at the Calif. docks it would seem to me, because at this point management does not yet have the robotics option to replace human labor does it? Evidently both sides to this issue have viable, logical points to be considered but what is the cause behind the spawning of these troubles needs to be removed or not ASAP doesn’t it?

I don’t know and don’t care what they want, give it to them. They are productive. The useless one-tenth-of-one-percent, CEO’s, criminal bankers and mouthy news media are certainly not worth what they get.

MargueriteSaturday, February 21, 2015 at 1:58 pm

I find it impossible for a longshoremen making $145,000.00 per year blocking the goods coming into our shores. THEY aways blame the workers. Use commonsense these men are not going to starve their families and demand more when they are receiving that type of pay for a yearly salary. Some one is trying to put up a smoke screen so have us believe such crap!!!!
Who are the owners of these companies? This could be a form of terrorism that has infiltrated our upper managements of this industry, and to hide their covert activities, they are blaming it on the workers, when in reality they are not the ones calling the shots, it is the upper management who don’t give a hoots about the products not making it to there destination. They just have another means of gaining control in the mean time, hurting the USA and slowing down our way of life in America. Our way of life is” incompatible” with theirs, so their motto “OWN THE INDUSTRY OUTRIGHT” and you can play mayhem and slow down the pace of capitalism in America!

Dennis MorrowSaturday, February 21, 2015 at 2:49 pm

Hello cruel world!
Something I find almost amusing is this; with a slowdown in the economy, this backup at the ports is almost too timely. Referring to the blame game. ”it was labor’s fault, they went on strike”, should make nice review in the future, don’t you think? Or, how about ” Obama not to at fault. Economic slowdown continues due to workers refusing to work”. Yup! This is a remarkable timing of events. Heck, even Wal-mart and other retailers can claim their products have not been delivered, and therefore not being paid. China, India, all those manufacturers and shippers are the big losers here, mostly by contractual agreements. o, for now anyways, that perhaps is OK. Long as this is not the loss of the good old boys, us North Americans. EH?